First State Bank v. Clark

CADY, Justice.

This appeal requires us to determine whether a creditor’s perfected security interest in crop proceeds continues under Iowa Code section 554.9306(2) (1999) when the proceeds were not received by the debtor. We reverse the decision of the district court and remand the case for further proceedings.

I. Background Facts and Proceedings.

First State Bank of Nora Springs financed the farming operation of Daniel Yezek. Yezek was a grain farmer and First State Bank had a perfected security-interest in his crop, as well as any proceeds from the crop. First State perfected its security…